New-homes sales disappointed in October, according to Commerce Department data released today, indicating that sales declined 3.0% for the month to an annual rate of 368,000 units. Moreover, sales data for July, August, and September were revised down significantly, with September’s estimate dropping from 389,000 to 369,000 units sold.

Despite the disappointment, “Wednesday’s data did not change the view that housing is still in recovery mode,” wrote Reuters’ Jason Lange in an analysis of the report, while adding that “the pace of new-home sales in October was below the level of May, suggesting little upward momentum.”